The Janus Global Investment Grade Bond Fund and the Global High-Yield Fund will both be co-managed by Gibson Smith and Darrell Watters, who co-manage all of Janus’ fixed income strategies.
The Global Investment Grade Bond Fund will invest primarily in fixed or floating rate investment grade bonds of issuers from anywhere in the world. Meanwhile, the Global High-Yield Fund will invest in debt securities or preferred stock of issuers rated either below investment grade or, if unrated, of similar quality to below investment grade – investment will also be on global basis.
Janus said the philosophy of both funds is based on a bottom-up fundamentally driven investment process that is focused on credit-orientated investments. It added the investment approach uses a credit-informed macro view and involves deep co-operation between equity and fixed income research teams to obtain an all round view of a company and its capital structure.
The Global Investment Grade Fund has between 150-300 holdings and will use the Barclays Capital Global Aggregate Corporate Bond Index as its benchmark. The fund will invest in approximately 40% non-US bonds, with up to 25% below investment grade in B rated or higher high-yield securities.
Meanwhile, the Global High-Yield Fund has 100-250 holdings, will use the Barclays Capital Global High Yield Index as its benchmark and will invest in approximately 50% non-US bonds. Both funds will have a tracking error range to benchmark of 250-500 bps per annum.
“Our bottom-up fundamentally-driven investment process with a focus credit selection is in contrast but complementary to most other fixed income managers who typically take a more macro, top-down approach," said co-manager and Janus’ CIO Smith.
"This process is enhanced by our integrated fixed income-equity research model, which allows us to analyse a business in its entirety and to make better informed investment decisions.”